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Content Definition Objectives Why plan Why do Organizations Plans What needs to be planned Why is S&OP is Important Planning process Princples of S&OP Who is using S&OP successfully Benifits of the S&OP
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MPA “pass” Final Group Members
Amir Ali Talpur 01 Fahad Qamar 26 Ihsan Ali Buledi 41 Asadullah Domki 81 Imran Khan Khoso 110
Content
Definition ......................................................1 Objectives .................................................... 2 Why plan ........................................................3 Why do Organizations Plans ...........................4 What needs to be planned ..............................5 Why is S&OP is Important ...............................6 Planning process.............................................7 Princples of S&OP...........................................8 Who is using S&OP successfully.......................9 Benifits of the S&OP .......................................10
Sales and opertional planning Definition : A formal process consisting of
series of meeting where data from various areas of buisness in discussed and decision are made
Objectives:
Provide aggregate management control over the operational demand /supply planning process
Understand the financial consequences and hence tie back to buissness plan
Balance Supply and Demand , Volume and Mix:
Why Plan?
The reason why you plan is to influence and be aware of the future and its benefit to you.
To achieve a certain goal or objective.
This is done through a series of steps which will help you in formulating a strategy and means of control of someone or something.
Why Do Organizations Plan? To anticipate and prepare for the
future To ensure adequate and available
resources To complete projects on time To avoid problems To establish backup plans To ensure we don’t forget tasks To determine potential results
What needs to be planned?
Resources I.S Finances Services Products Materials Labor Equipment Facilities
WHY IS S&OP IMPORTANT ?
S&OP is not only important; it’s essential. It enables virtually all manufacturing businesses
to be run more effectively and more profitably.
The planning process
S&OP is the result of monthly planning activities. It is usually based on an Annual Operations Plan (AOP) that acts as the company's annual target in terms of sales and supply
Executive S&OP
Demand & Supply
Balancing
Supply planning
Demand Planning
Data Generatio
n
Performance
Measures
Demand planning
Acess last period Incorporate sales and customer input Build new baseline demand plan.
Supply Planning Capacity planning Demand / Supply strategies Develope feasible supply plan Supplier management Manufacturing planing Bills of resources
Raw Material
Customer
Component
Manufacuterer
Retrailer
Demand and supply balancing Identify gaps Gaps conflict resolution Recommendation and agenda for
executive meeting. Demand Supply
Executive Meeting Review of recommendations and make
decision Resolve remaining issues Review PLM plans Issue consensus plan
Principles of S&OP
The Sales and Operations Planning is the Company Game Plan
The Sales and Operations Plan is the vital link between long range and short range planning
Sales and Operations Plans are established at the Product/Service Group level
The Sales and Operations Plan includes all management targets
The Sales and Operations plan is monitored and revised monthly
Who's Using S&OP Successfully?
HP Large companies such as :
And many small compnies.
HP
NESTLE
MICROSOFT
NOKIA
COCA-COLA
Who's Using S&OP Successfully? Microsoft, among many others,
also uses Executive S&OP and all of their manufacturing is outsourced.
Companies in this category may need Executive S&OP even more, because they have less control over their sources of supply.
Benifits of S&OP If implemented and used effectively ,
S&OP will yield a major benifits to the firm:
Improve customer services Reduce inventory Lower manufacuring & distribution costs Better control of overall buisness
performance Increased team work with and across
functions
Who says nothing is impossible ?
We are doing nothing for year